Abstract

This working paper is one of a series produced by IIASA discussing the practical problems of East-West Joint Ventures located in the CMEA countries.

In this paper the author discusses joint-ventures' salient managerial and personnel issues, an often overlooked but increasingly critical aspect in these cooperative ventures. Beyond analyzing relevant host-country legislation, the paper delves into actual human relations and organizational problems as discussed by joint-venture practitioners: managers, partners, rank and file employees, and government representatives. These practitioners help explain where likely trouble spots will arise in areas such as hiring, wage determination and incentivization, organizational set-up, productivity, and conflict resolution. They further explain the influential role of the host-country's general citizenry on the joint venture's success or failure. Importantly, the case studies also offer some practical solutions to these difficult issues.

While the economic environment of the Soviet Union and Eastern Europe changes daily, this analysis of how Eastern and Western management systems and personnel mesh in joint ventures is likely to continue to be relevant as the two systems move closer together.